The decisive match
The European dream is still alive in China: the quality of manufacturing, the storied brands, and the strategic skills developed thousands of kilometers away continue to captivate Beijing.
"For China, Europe represents an important continent from which it can attract investments and investors," says Francesco Vitali, Bocconi Alumnus and Tax Partner at Deloitte, who has lived in Hong Kong for over a decade, building bridges between two seemingly distant worlds. "Investing in China," he reminds listeners, "has its risks, but you are supported by the right partners, it's easier to enter the market and avoid misunderstandings."
How is the European economy viewed by China?
Europe continues to play a fundamental role for China, not only for investment, but also as a source of skills and technology. Beijing has just entered its fifteenth five-year plan (2026-2030), which aims to boost domestic growth and reopen the country internationally. Europe is seen as a strategic partner, particularly in supporting the country's digital and green transitions. On the one hand, China wants to strengthen its domestic market, on the other, it aims to attract qualified foreign direct investment, especially EU investment, in technology and high-innovation sectors. This policy has led to the creation of specialized industrial districts and targeted programs for the soft landing of foreign companies.
In which sectors is there room for EU firms?
In addition to pharmaceuticals and healthcare, Chinese demand is very strong in green digital transformation. Therefore, companies specializing in renewable energy and components for 5G networks can find markets for their goods. Italian and German expertise in precision mechanics and robotics is highly in demand, as is everything related to agri-food, lifestyle, and luxury craftsmanship. Made in Italy merchandise maintains its appeal, especially for certified and traditional products. Certain companies have successfully transformed these opportunities into veritable success stories.
Is investing in China still risky?
The country risk still exists, but it has become much more manageable. China has enacted stringent laws on intellectual property and trademark protection, reducing counterfeiting and abusive registrations. Furthermore, many joint ventures can be structured through Hong Kong, where Anglo-Saxon Common Law applies, ensuring greater contractual security. However, differences between the two regions remain, which is why it is essential to understand the Chinese context and rely on experienced partners.
What difficulties do European companies encounter when investing in China?
One critical issue is repatriation of capital and profits, which is subject to authorization from local monetary authorities, as are customs procedures for importing machinery. However, operating through dedicated districts with the support of Chambers of Commerce can greatly simplify market access.
What does it mean to bring European companies to China?
It means translating two different business cultures. China prioritizes immediate results and industrial scaling; while Italian firms value creativity, quality, and brand storytelling. My job is then to build bridges: to design efficient corporate and tax structures, but also communicating the cultural value of the Made in Italy. The right approach is a prepared and structured one, because approaching the Chinese market without a clear strategy often leads to incomprehension and failure.
Looking to the future, you thus have a positive outlook, despite the global uncertainties that have plagued recent months.
Yes, and more so than a year ago. After the pandemic and the fallout with the United States, China is reopening its channels with Europe with a pragmatic approach. For Italian entrepreneurs, it's the right time to look east again, with caution but also with confidence: China remains a complex country, but enormously rich in opportunities for those who are well-prepared.